Texas Tax Break

How Texas producers can recover millions of dollars annually    

While oil prices are slowly increasing, it’s not enough to overcome the extensive financial challenges of recent months. Sowhat’s the most effective way to make a financial comeback this year 

As operators in Texas basins explore options to produce more with less, Locus Bio-Energy Solutions (Locus BE) is offering BIG opportunity worth millions of dollars annually 

Introducing the Texas H13 Tax Credit:  
A tax credit recently approved by the Texas Railroad Commission under Statewide Rule 50 (Texas Administrative Code Rule 3.50) that qualifies leases using Locus BE’s unique non-living biological process for tertiary EOR to receive a 50% Severance tax break annually for the next 10 years 

The best part? It’s applicable to all production on the lease, not just the incremental oil  

How DProducers Receive the Credit?  
Two simple steps:   

1. Treat wells with Locus BE’s approved AssurEOR treatment program
The Texas RRC has deemed the award-winning AssurEOR program a tertiary EOR technology that qualifies for the tax credit. AssurEOR consists of two biosurfactant treatments, with no nutrients or live organism, that can be applied individually or combined depending on individual lease initial assessments: 

    • AssurEOR FLOW: primarily aimed at dispersing organic deposits like paraffins in the wellbore 
    • AssurEOR STIM™: designed to stimulate production through a deeper penetration into the reservoir and imbibition 

The biosurfactants used in these tailored applications are the first environmentally friendly products that can outperform synthetic chemicals in both cost and efficacy. They have proven results in remediating reservoir damage due to paraffin build up or water blockagesand extending the producing lifespan of declining wells.   

2. Provide confirmation of a sustained production increase.  
The H13 tax credit is granted to leases that show production improvements as a result of the AssuEOR  treatments. Experts at Locus Bio-Energy Solutions have developed the know-how to effectively track and submit EOR performance results to the RRC and can support and guide lease operators throughout the process. The tax credit is paid each year for 10 years, as long as AssurEOR treatments are continued and an increase in production is maintained—with sustained production increases of 40% or more seen in many cases 

How Much Does The Program Cost 
Unlike other EOR programs, the AssurEOR program requires little to no CAPEX, meaning that even smaller operators can reap the financial benefits of high ROIAs an added value, tax credit application support and data management are also offered by Locus BE experts and engineers throughout the process

How Much Can Producers Save Annually?  
The production enhancements and 10-year tax credit provide cost-effective avenues to boost revenue while maximizing sustainability. To see estimated annual tax savingsenter the lease information here:   

 

AssurEOR treatments also maximize production, prolong the economic lives of wells, minimize operating cost and drastically reduce the need for new drilling—saving operators even more. 

The H13 tax credit provides a rare opportunity to gain financial stability through cost-savings from the use of a green technology—a feat not previously possible.  

Questions? Want to get started? Contact our experts today.